Alibaba Group is going out for the kill in Hong Kong. The listing of the electronic commerce organization is looking to raising as much as $12.9 billion. To achieve this, the brand is fixing the price of its shares at a 2.8% discount relative to the one in New York. This disclosure was made by insider sources and it got analysts excited all over the globe.
If all goes as planned, it is going to be the largest share sale in Hong Kong for almost a decade. It is also going to be a major record on a global scale. Of course, it is going to rub off positively on Hong Kong. This is very important considering the crisis that the city has been engulfed in recently. Hong Kong has had to face almost half a year of protests against the government. The sustained protests plunged the wealthy enclave into a rare recession, the first of its type in ten years. That is one other reason why observers are going to be very interested in seeing how the impact is going to permeate the Hong Kong society.
The e-commerce giant is set to properly conclude talks on the price on Wednesday. However, insiders have revealed what it is most probably going to be at the end of it all. Their speculations are pointing strongly at HK$176. An insider is so confident about this. Hence, nothing is expected to change the pricing expect a major shift in the market place. This is expected to be the last price and what is going to be announced once the listing goes on. The insiders who made the revelation pleaded for anonymity and that was because of the confidential nature of the details.
Alibaba Aims for the Very Top
If the plans go ahead and succeed, Alibaba is going to be able to get as much as HK$88 billion or even more. That is $11.3 billion as long as it goes with the price stated above. There is another interesting dimension to the whole thing. In the tradition of the Chinese people, number 8 holds a lot of significance. As a matter of fact, they consider the number to be a lucky one. That is because the number eight in China is linked with blessings and success. So that Alibaba is targeting a minimum of HK$88 billion is going to be looked upon with favor by various stakeholders. Talk of having a good understanding of the local terrain.
If plans go beyond even what as planned, Alibaba can end up raising as much as $12.9 billion. This is most likely to happen if the over-allotment alternative is utilized. One of the officials of the brand refused to give information on the pricing details that have been handed out to the investors. Obviously, Alibaba is not interested in opening up until the deal is fully made public. In New York, the e-commerce giant shares closed in at $185.25 on Tuesday as analysts are expecting a pleasant trend.